Suppose that Captain Canada can produce 100 hockey sticks or 10 gallons of maple syrup in a typical work week, while Captain Germany can produce 90 hockey sticks or 10 gallons of maple syrup in a typical work week. From these numbers, we can conclude
A. Captain Canada has a comparative advantage in the production of hockey sticks.
B. Captain Germany has a comparative advantage in the production of maple syrup.
C. Captain Canada has an absolute advantage in the production of hockey sticks.
D. All of the above conclusions are correct.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. If the legal incidence of a tax is entirely on suppliers, then the tax will have no economic effect on demanders. 2. An excise tax of 20 cents on gasoline shifts demand down by exactly 20 cents. 3. When a sales tax of 20¢ per soda is imposed on soda consumption, the supply curve for soda shifts down by precisely 20¢ per soda. 4. If a rise in supply and a rise in demand occur at the same time, then we know that the price must also rise. 5. If a fall in supply and a rise in demand occur at the same time, then we know that the price must also rise.
There are a few ship manufacturers in Polonia and each firm faces a downward sloping demand curve. The ship-building industry in Polonia is an example of a(n) ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
Explain the concept, goals, and methods of integrated rural development
What will be an ideal response?
If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, calculate the arc price elasticity
A) -1.92 B) -1.64 C) -4 D) -2